 |
Zhengzhou Baiwen Hits Ceiling on Resumption of Trading
The widely concerned ST (special treatment) company Zhengzhou Baiwen resumed trading Wednesday afternoon after a four-month suspension. As had been predicted by analysts, it hit the daily rising limit on opening.
Market sources forecast the share would continue hitting ceilings for several days. Small and medium investors were reluctant to sell the shares they had as they were not certain where the market would go.
According to Zhengzhou Baiwen's restructuring plan, all its shareholders will transfer 50 percent of the shares they hold to Sanlian Group. The shares held by shareholders unwilling to transfer their shares will be taken back by the company at a fair price to be set at the next shareholders' meeting.
According to the plan, shareholders will either sell their shares or accept the conditions. They would most probably break even if they choose transfer after the restructuring, said market sources. It will be a hard problem to set the selling price if they choose to sell their shares.
Separately, Zhengzhou Baiwen Co., Ltd. attracted attention of all sides after it resumed trading on the afternoon of January 3, 2001.
The company cautioned the approval of restructuring plan by the general meeting of shareholders does nor mean the success of its restructuring. As the specific plan has not been announced yet, uncertainty lingers on and the result is unforeseeable. Investors are warned to get information from its announcements published in magazines and newspapers designated by China Securities Regulatory Commission (CSRC), the watchdog. The company will make an announcement immediately after the specific restructuring plan has worked out. Investors are warned against risk involved. (Panorama)
| Based in Zhengzhou, the capital of Henan province, the state-owned Zhengzhou Baiwen Co., a distributor of household goods, branched into a national retail network. In April 1996, the company became the first enterprise from the city to be listed on the stock exchange. However, Baiwen created false accounts to meet listing requirements.
Baiwen reported a loss of 115 million U.S. dollars in 1999, the biggest loss for a listed company in China. Thus, creditors tried to liquidate the firm. |
In This Section
|